Clinton aide returns to Morgan Stanley
February 27, 2013 6:00 AM EST
Nides, who previously worked for Morgan Stanley from 2005 to 2010, will work with clients and management as vice chairman and report directly to Chief Executive Officer James Gorman, the bank said in a press release.
Nides rejoins Morgan Stanley at a time when it is trying to boost returns and Wall Street must implement a raft of new rules to avoid a repeat of the devastating financial crisis.
While at the State Department Nides represented the United States abroad as deputy secretary of state and was responsible for management and resources at the department.
His return to Morgan Stanley is another instance of Washington's "revolving door" in which people routinely swap jobs between the government and the private sector, something critics say can craft overly cozy relations between the two.
Nides has long-standing ties to the Democrats, starting his career as a staffer for the House of Representatives, and later working Fannie Mae, the U.S. trade representative, and for investment bank Credit Suisse
Morgan Stanley faces a big task for this year: boosting returns that have lagged peers, in large part because of high expenses in its wealth management group, and relatively low revenue in its bond trading business.
Its return on equity, a measure of how well the bank squeezes profit out of shareholders' money, was just 3.2 percent in the fourth quarter, far below the double-digit returns of competitors.
(Reporting by Douwe Miedema; editing by Andrew Hay)
Most Popular Slideshows
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- iOS 8 Jailbreak Release Date Likely this October 2014 with Pangu not Evad3rs Firming Up as Creator
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- Top 4 Free-To-Download Apps for Fuller iPhone 6, 6 Plus Experience
- Battery Saving Android 5.0 Lollipop Feature Extends The Battery Life Of Your Android Device By 90 Minutes And Displays Orange Bar While Power Saving Mode Is On
- Apple Inc. (AAPL) Stock Set to Soar Beyond $100 Despite Decline After New iPad Launch
- Russia Beefs Up Gold Reserves To Offset Heat of Sanctions And Undercut Dollar
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu